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2022 was a complete period of chaos, and the legacy of the great collapse continues to suppress crypto, albeit weakly. Genesis, the period’s largest crypto lending creditor, could not foresee the consequences while emptying its coffers to crypto gamblers to make more money. It later went bankrupt, but recently the process is nearing an end as DCG has paid off its debt to it. Today, they have overcome another problem.
The End of FUD for the Crypto Bull Market
If we are to see a real crypto bull market, the end of major FUDs is necessary. Binance has already reached an agreement with the US. Tether has resolved many of its issues. Circle is going public. DCG has paid off its massive debt to Genesis, and now Genesis has reached a settlement with the New York regulator.
Compared to the rain of FUD in 2022, we are experiencing the complete opposite in the last three months in cryptocurrencies. Naturally, the price is moving in the exact opposite direction of that period. This is great. The New York Department of Financial Services will announce the details of the agreement today, and the settlement with Genesis Global Trading will end another FUD.
Genesis and the Legal Process
Significant failures in Genesis’s anti-money laundering and cybersecurity programs will result in the loss of its BitLicense company. It also has to stop its activities in New York and will pay a fine of 8 million dollars.
Inspector Adrienne Harris said;
“Genesis Global Trading’s failure to maintain a functional compliance program demonstrated a disregard for the Department’s regulatory requirements and exposed the company and its customers to potential threats.”
The relatively low amount of this fine reflected Genesis’s cooperation during the investigation and efforts to review its programs. Nevertheless, Genesis is required to cease all its activities in New York. In the future, with the help of DCG payments, it is expected that Gemini debts will be paid off and grievances will end.
The problems caused by the crypto lending market were due to the neglect of borrowers’ ability to pay and many oversights, leading to devastation in the markets. At this stage, US authorities are expected to address this case in regulations to prevent similar problems from happening again.
